Startups in crisis: Time to readjust priorities, prove the business model

June 6, 2022

The bad news regarding job cuts at tech startups continue, with Brazil’s 2TM laying off 12% of its workforce and Peruvian social commerce company Favo also laying off staff and ceasing operations in Brazil, a country it entered in 2020.

But while it is true that the crisis is mostly affecting startups, analysis by research and data company PitchBook predicts that not everything will be negative.

The current environment marked by higher interest rates and a potential recession has seen venture capitalists tighten their belts, although for some sectors the adverse times may be an opportunity for growth, as macroeconomic indicators will move consumption and trade patterns.

According to analysts’ predictions, the winners could be software companies, those involved in climate technology, cybersecurity and artificial intelligence, while the losers could be fintech, foodtech and blockchain.

Read the complete article on Bloomberg Linea >

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